Livestock futures are mixed in light midday trade. The lack of support in lean hog futures has pulled back from late week buyer support that helped to stabilize the hog complex. This is adding questions of market uncertainty through the rest of the week. Cattle markets are mostly higher although light volume is creating some softness through the market. Corn prices are higher in light trade. September corn futures are 3/4 cent higher. Stock markets are higher in light trade. The Dow Jones is 250 points higher while Nasdaq is up 73 points.
LIVE CATTLE:
Early buyer support stepped into live cattle trade was driven by strong upward movement in the feeder cattle complex and spill over activity from late last week. But this momentum has slowed as traders have backed away from the complex Monday. Live cattle futures remain mixed in a narrow trading range at midday with prices hovering from 42 cents lower in front month October contracts to 22 cents higher in deferred contracts. The overall lack of direction is based on sluggish volume and not a change in trader activity level in the market. Cash cattle markets are undeveloped with show lists generally higher although overall total numbers are not yet fully seen yet. It is likely that cash cattle trade will be delayed until the second half of the week with either side not expected to be in a huge hurry at this point. Beef cut-outs at midday are lower, $0.22 lower (select) and down $0.64 per cwt (choice) with light movement of 97 total loads reported (54 loads of choice cuts, 13 loads of select cuts, 12 loads of trimmings, 18 loads of ground beef).
FEEDER CATTLE:
Light gains have been able to hold at midday Monday, but this is a far cry from the aggressive buyer support seen through the end of last week as well as overall support seen early in the session. Traders are focusing on continued commercial buyer support stepping into nearby and deferred contracts although the tone of fundamental market activity has remained sluggish over the last couple of weeks.
LEAN HOGS:
Light to moderate pressure is slowly developing across the lean hog futures complex with traders focusing on renewed selling pressure in front month October contracts early Monday. The overall lack of direction in the market remains the focus in most other market trade with prices hovering from steady to 15 cents lower as trade volume remains at near standstill through the lean hog markets. Cash prices are unreported on the National Direct morning cash hog report. Cash prices are unreported on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 217 loads selling with prices gaining $1.44 per cwt. Lean hog index for 9/7 is at $68.94 down $0.43 with a projected two-day index of $67.91, down $1.03.
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